FleetCor downsizes term loan B to $300 million, upsizes term loan A

By Sara Rosenberg

New York, Sept. 30 – FleetCor Technologies Inc. reduced its seven-year term loan B to $300 million from $1.05 billion and increased its five-year term loan A to $1,965,000,000 from $1.7 billion, according to a market source.

The term loan B is still priced at Libor plus 300 basis points with a 0.75% Libor floor and an original issue discount of 99˝ and still has 101 soft call protection for six months.

The company’s now $3.3 billion senior secured credit facility, down from $3,785,000,000, also includes a $1 billion revolver A and a $35 million revolver B.

Bank of America Merrill Lynch, Barclays, PNC Capital Markets LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Recommitments were due at 11 a.m. ET on Tuesday, the source said.

Proceeds will be used to help fund the acquisition of Comdata Inc. from Ceridian LLC for $3.45 billion.

Other funds for the transaction will come from the issuance of about 7.3 million shares of FleetCor common stock to Ceridian, and, as a result of the term loan B downsizing, from a securitization, the source added.

Closing is expected in December, subject to regulatory approvals and other customary conditions.

FleetCor is a Norcross, Ga.-based provider of fuel cards and workforce payment products to businesses. Comdata is a Brentwood, Tenn.-based business-to-business provider of electronic payment solutions.

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